What kind of returns to scale is the firm experiencing

Assignment Help Business Economics
Reference no: EM13978514

A.B. Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. Total number of units of output increased from 78 to 160. What kind of returns to scale is the firm experiencing? Defend your answer.

Reference no: EM13978514

Questions Cloud

Complicated in maintaining safety and soundness : The role of Bank Regulation has become increasingly complicated in maintaining “Safety and Soundness” of the Financial System. What is Micro-Prudential Supervision of banking institutions? The 2000s witness a dramatic increase in Financial Engineerin..
Inefficiencies associated with government granted monopolies : Do you vote? Why or why not? What does the probability of decisiveness suggest you should do? What are the inefficiencies (social waste) associated with government granted monopolies?
Withdraws the money from savings account : Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the..
Increased cash flow should take care of profits : The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
What kind of returns to scale is the firm experiencing : A.B. Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. ..
Playing a one-stage guessing game : Alice and Barbara are playing a one-stage guessing game. Each must choose a number between 1 and 8 (inclusive). Alice’s target is to match Barbara’s number. Barbara’s target is to name twice Alice’s number. Each receives $10 minus a dollar penalty th..
Discuss the major agenda items of this year : Discuss the overall purpose of the G 20 summit. Do you believe there is a need for the U.S. to continue to participate in the summit? Why or why not. In addition, discuss the major agenda items of this year’s G20 summit. What impact do you believe th..
Consider a typical short-run AS and AD model : Consider a typical short-run AS/AD model which consists of AD and SRAS curves. In each of the following cases, in the short run, determine whether the events cause a shift of a curve or a movement along a curve. Determine which curve is involved and ..
Calculate the income-expenditure equilibrium level GDP : Suppose an imaginary economy is represented by the following equations: Calculate the income- expenditure equilibrium level GDP. Suppose the level of planned investment spending (Iplanned) drops by $50 . What will the new equilibrium GDP be?

Reviews

Write a Review

Business Economics Questions & Answers

  What should she charge per bus to maximize her profit

What should she charge per bus to maximize her profit? What would her profit be?

  Illustrate what sales output and price should it set

illustrate what sales output and price should it set. what strategy would you recommend.

  What is total holding cost for the year using this policy

The annual demand for a product has been projected at 2,500 units. This demand is assumed to be constant throughout the year. The ordering cost is $30 per order, and the holding cost is 40 percent of the purchase cost. Currently, the purchase cost is..

  An injection-molding firm-buy the removal equipment

Able Plastics, an injection-molding firm, has negotiated a contract with a national chain of department stores. Plastic pencil boxes are to be produced for a 2-year period. Able Plastics has never produced the item before and requires all new dies. I..

  In what way is fiscal easing in japan relevant here

At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only ..

  Find all the nash equilibrium in pure strategies

Bruce, Colleen, and David are all getting together at Bruce’s house on Friday evening to play their favorite game, Monopoly. They all love to eat sushi while they play. They all know from previous experience that two orders of sushi are just the righ..

  Value of the option premium to hedge your position

Q1-You decide to hedge your position in the stock and buy options at the fair market value , when strike prices of 60$. a) What is the value of the option premium to hedge your position

  State whether the actions will increase or decrease gdp

State whether the following actions will increase or decrease GDP:

  Elucidate why these companies oppose laws allowing

Elucidate why these companies oppose laws allowing reimportation of drugs to the United States.

  Focusing only on the price effect and ignoring the quantity

Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..

  Large manufacturing firm near federal land preserve

Sally operates a large manufacturing firm near a federal land preserve known for its waterfowl and fauna. The federal government has long suspected that Sally and her Organization had ties to terrorist organizations and were involved in various crimi..

  Why is quota more detrimental to an economy

What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too la..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd